A transaction has been recorded in the T-accounts of Gibbs Company as follows: Unearned Revenue Credit Debit Multiple Choice O Cash 1,500 Which of the following could be an explanation for this transaction? O Credit C Debit 1,500 Gibbs has received cash for services to be provided in the future. Gibbs has completed services for which they had earlier received cash in advance. O Cash has been paid out to a company that will provide future services to Gibbs Company. Gibbs has provided services to a customer on account.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A transaction has been recorded in the T-accounts of Gibbs Company as follows:
Unearned Revenue
Debit
Cash
Credit
Multiple Choice
Debit
Credit
1,500
Which of the following could be an explanation for this transaction?
1,500
Gibbs has received cash for services to be provided in the future.
Gibbs has completed services for which they had earlier received cash in advance.
Cash has been paid out to a company that will provide future services to Gibbs Company.
Gibbs has provided services to a customer on account.
Transcribed Image Text:A transaction has been recorded in the T-accounts of Gibbs Company as follows: Unearned Revenue Debit Cash Credit Multiple Choice Debit Credit 1,500 Which of the following could be an explanation for this transaction? 1,500 Gibbs has received cash for services to be provided in the future. Gibbs has completed services for which they had earlier received cash in advance. Cash has been paid out to a company that will provide future services to Gibbs Company. Gibbs has provided services to a customer on account.
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